Competitive Bidding and Acquisition: Chevron Case Study

680 WordsJan 11, 20183 Pages

Competitive Bidding & Acquisition
Q1.What are the lessons we can learn from here about hazards in acquisition decision making. From target point of view? From bidder point of view? From the boards point of view?
The hazards in the acquisition, from all perspectives, can be best summarized by uncertainty; especially in regards to oil prices. From the targets perspective, most of the employees were offered jobs with the new company. Of the 6,400 employees, 5,000 were offered employment with the new company and virtually all of them accepted their offers. The chief executive of Unocal also stayed on to assist with the transition; however he was expected to leave later on after the merger was complete. However, the most uncertainty that was faced from the Unocal organization before the deal was complete was who was going to buy the company. There were several interested parties including the Chinese CNOOC who actually offered a higher price than Chevron. If the Chinese national firm would have purchased Unocal there would have undoubtedly been many changes that would have occurred in the company internally. However, members of Congress actually passed certain legislative barriers which were crafted to effectively block the Chinese firm from the deal. Oil reserves are of national security importance as well as their importance to the economy and Congress deemed it necessary to intervened in the market to ensure that a domestic company had control over these resources. This

Mergers and acquisitions have always been around and have been popular in the United States for decades. It has been said that that mergers and acquisitions have contributed to the reconstruction of businesses during the 80’s and 90’s. The following is an analysis of a case study on Southwest and will address acquisitions, mergers, and restructuring.
Acquisitions are popular in the United States and there are many reasons why a company decides to acquire another company. Companies will decide to

Marbel Gonzalez
MCC 609
Fall 2012
Dr. Klosek
Case Study on Language Acquisition
1. Goals of the Case Study
Throughout my life I have encountered and worked with adults that come from different native backgrounds. Many of them come to America in search of better opportunities. As a result, they come with their first language mastered and now they must learn a second language. America continues to be the destination of immigrants around the world. Millions will continue coming here even

Introduction
Mergers and acquisitions are fast becoming common strategies for organisations. This is mainly to generate and enhance revenue in order to gain market share. Most organisations either collaborate with other businesses or decide to go for takeover which can affect organisations structure. This report will look at the case study of the takeover of Cadbury by Kraft in 2010 and highlight the main outcome caused internally and externally. It will look at the employment values of Cadbury

Effect of business acquisition to get competitive advantage based on the case study: Acquisition of Somerfield by Co-operative group
Background:
Business acquisition is one of the most vital tools to expand an existing business effectively. An acquisition takes place when an existing company buys another company which has more or less similar operating activities and ended up controlling it. It is clearly different from merger which is the integration of a business with another and sharing the

﻿Title: Competitive Strategy, Merger & Acquisition
Introduction
Tata group is a conglomerate India company operating in over 100 companies within 7 sectors which include engineering, communications and information, services, technology, materials, chemicals, and consumer products. The company operates in more than 80 countries across 6 continents, and the group total revenue was approximately $83.3 billion at the end of 2011 fiscal year. Tata group employs over 425,000 people worldwide, and allows

Chevron
Background
Chevron is a publicly traded company on the New York Stock Exchange. Their stock symbol is CVX. Chevron is in the business of oil and gas and was founded in 1984 as the Chevron Corporation. Chevron’s headquarters is in San Ramon, California and they serve on a multinational level to over 180 countries world wide. This makes Chevron the fourth largest petroleum company in the world. In 2015 Chevron had grossed revenue of about 130 billion dollars with a net income of 4.58 billion

Case 1: Chevron
October 24, 2011
Introduction of the Company
Chevron began with the discovery of oil north of Los Angeles in 1879 and was originally named the Pacific Coast Oil Company. Later John D. Rockefeller’s Standard Oil bought Pacific Oil in 1900 to form Standard Oil (California). In 1911, the Sherman Antitrust Act would force the breakup of the parent Standard Oil and Chevron became Standard Oil of California or Socal. Socal would go on to form joint venture with Texaco in 1936

Sealed Bidding vs. Competitive Proposals
The price of a commodity is determined by the stiff adherence to proper procedures which creates an opportunity for bidders to compete for the contract on the same offer. In this process, bidders are allowed to submit their bid on the table first and then the agency chooses the one with the lowest bid and buys it. As the bidder with the lowest offer is awarded in this process, it's known as sealed bidding. On the contrary, the competitive proposals create

Compare and contrast sealed bidding and competitive proposals
Sealed bidding is a form of reviewing contracts in which the bid is literally 'sealed' and "submitted in response to invitation-to-bid (ITB). Sealed bids received up to the deadline date are generally opened at a stated time and place (usually in the presence of anyone who may wish to be present) and evaluated for award of a contract" (What is a sealed bid, 2012, Business Dictionary). Although the bids are sealed prior to being opened

Case Study: Chevron Corporation (CVX)
History
The multinational Chevron Corporation dates back to its early beginnings in 1870 as Pacific Coast Oil Company. Following subsequent mergers, they eventually emerged as Standard Oil Company in 1911 after a forced divestiture into 34 independent companies by the U.S. Supreme Court under the Sherman Antitrust Act. It would later become Standard Oil Company of California (SoCal) after acquiring Pacific Oil Company in 1926. 10 years later, the